Effect pigments suffer from potential safety and handling problems. When they are combined with water they can generate hydrogen gas over time which is a problem because of the pressure build up and the flammability of hydrogen gas. In addition, dry effect pigments can form dust which is potentially explosive and a have the potential to cause inhalation and handling problems.
To mitigate the generation of effect pigment dust, many effect pigments are treated with a resin or other additive to make a pellet and/or granules. Unfortunately, the pelletized and/or granulized effect pigment products contain <84% pigment and a significant fraction of additives that must be dissolved prior to incorporation of the pigment into a coating. When additives and resins used to make standard pellet products are incorporated into a coating they can affect how much pigment may be added or they may be incompatible with the desired coating system.